Prospera Energy Inc.
CALGARY, Alberta, Nov. 28, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (PEI: TSX-V; OF6A: FRA) (“Prospera”, “PEI” or the “Corporation”)
Private Placement
Prospera Energy Inc. announces it is expecting to close the first tranche of its non-brokered unit offering, for total proceeds of $500,000. Each unit, priced at $1,000 per unit, consists of: (i) a one-year secured promissory note with a principal amount of $1,000, carrying a 12% annual interest rate, and (ii) 5,000 common share purchase warrants of the Corporation exercisable at $0.05 for a period of three years. Subscribers are entitled to a 5% gross overriding royalty (GORR) for every $1,000,000 of principal investment on revenue from all Prospera properties on incremental production above 1,363 barrels per day, calculated on a monthly average until the principal debt is fully repaid. The GORR will be reviewed as a disposition by the TSXV and is subject to TSXV acceptance. Interest on the notes will accrue and be paid quarterly, accompanied by a 2% facility fee. Prospera intends to use the net proceeds for production optimization and general working capital. The maximum amount of this offering is $1,500,000. This offering is subject to acceptance by the TSXV.
Loan Amendment
The Corporation and its principal Lender have amended the $11,000,000 promissory note dated July 7, 2024, increasing the principal balance by $500,000 to $11,500,000. The note retains its original terms, including a 12% interest rate and two-year maturity, with no other changes. This amendment is subject to acceptance by the TSXV.
Acquisition Update
Additionally, Prospera Energy provides an update and clarification to its press release originally issued on September 5, 2024, in which Prospera acquired an additional 10% working interest in each of the Hearts Hill, Luseland, and Cuthbert properties from an arm’s length joint venture partner. The total purchase price for this transaction is $1,792,646, consisting of $400,000 in cash to be paid over 16 months and $200,000 in equity through the issuance of 3,076,923 PEI common shares at a price of $0.065 per share. These shares will be subject to a six-month hold period and TSXV acceptance. Furthermore, 3,076,923 warrants will be issued, allowing the holder to acquire one PEI common share at a price of $0.10 in the first year and $0.15 in the second year until expiry, also subject to TSXV acceptance. As part of this agreement, Prospera has agreed to forgive all outstanding debts totaling $1,192,646 owed by the joint venture partner. This acquisition remains subject to acceptance by the TSXV.
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